delivering measurable value - skf.com€¦ · delivering measurable value dan bradley ... • the...

Delivering measurable value

Dan BradleyDirector, Reliability Systems

SKF Capital Markets Day 2009

19 May 2009 © SKF Group

Agenda1. Introduction2. SKF Documented value created for customers 20083. SKF Knowledge Engineering4. Customer Value Examples


Introduction


• Customers are looking for immediatecost reduction

• SKF’s service & solution offerings are proving more resilient during this downturn

• It is more important than ever to demonstrate added value

• Total Cost of Ownership is more important than price

Current Situation

SKF Knowledge Engineering can

help find value and can deliver it!

How we define measurable value

• By SKF Documented Solutions Program or contract key performance indicators (KPI)

• Presented in financial language

• Aligns with customer objectives

• Provides SKF (one or more of):• Improved profit levels

• Superior pricing

• Increased volumes



SKF documented value created for customers 2008

SKF documented customer value added 2008(SEKm)

• Over 2.8 BSEK documented

• Over 18,000 cases of documented customer value

• These can be leveraged to show other customers proof of SKF’sadded value

Europe, Middle East& Africa, 1,373

Asia Pacific, 660

North America, 415

Latin America, 400


Where was value created in 2008?

• Of the documented value created in 2008 alone,

• 58% was related to increased availability and capacity

• 15% was directly attributable to short term cost savings in the areas of productivity, reduced component usage, reduction of spare parts, reduction of scrap and HSE (Health, Safety & Environmental)



SKF Knowledge Engineering


SKF delivers & receives value through:

•Value added products

•Value added services

•Advanced solutions –Knowledge Engineering

SKF Knowledge Engineering

SKF Knowledge Engineering – new market offers

E2 bearings & greases for electric motors and fans

Machine condition advisorDry lubrication system for conveyors


Customer engagement

Program Management

Business Case (Documented Solutions Program)

Implementation plan & quick scan / Maintenance strategy review

Client Needs Analysis (CNA)

3,800 casesSEK 2,840 m

approved savings

Culture

TechnologyProcess


Replicate and improve

Replication opportunities


Document value created (DSP)

Continuous improvement

Value AddedOLS $ 365,000

Lubrication System $ 240,000

PdM Inhouse* $ 17,500

PdM Outsourced* $ 90,000

Training* $ 15,000

Inspection/Reman* $ 20,000

MaPro* $ 60,000

• To other customer sites within same customer• Within SKF – share knowledge• Increase our customer base and references


Customer value examples

Paper company in USA

Pulp and Paper - SKF Certified Rebuilder

Customer need:• Improve electric motor reliability• Eliminate infant motor mortality• Reduce total cost of motor ownership

SKF solution:• SKF Certified Rebuilder program

Customer benefits: • $620,000 in reliability incidents savings and growing• 32-39% total electric motor repair cost reduction • Stronger suppliers supporting each other, adding more

value

SKF benefits:• SKF revenues, Value added, profit


Food & Beverage company in USA

Food & Beverage – Lubrication SystemsCustomer need:

A method of lubricating palletizer chains safely, without removing guards, and stopping the production line.

SKF solution: SKF Vogel Lubrication Systems drip chain lubrication system for palletizer chains was designed and supplied. System includes: pump unit, piston distributors, hardware, fittings, tubes & nozzles.

Customer benefits: • System eliminates safety hazard of manual lubrication and

cover removal• DSP has calculated an annual saving of $76,250

SKF benefits:• Improved SKF perception as value added, solution provider in

the lubrication systems area


Chemical company in Belgium

Chemical Industry – Total Productive ManufacturingCustomer need:The management wanted to improve the productivity and efficiency of some of their production sites by implementing Total Productive Manufacturing (TPM) as a continuous improvement programme.

SKF solution:SKF Asset Management Services has conducted 17 different TPM improvement projects, introduced Key Performance Indicators and extensive training programs for maintenance and production people.

Customer benefits: • Total sustainable cost savings: € 670,000 annually• Increase of the average availability of the production lines from 90% to 97%• 220 trained employees in TPM methodology

SKF benefits:• Being the preferred business partner for TPM and maintenance improvements• Creating new profitable consulting services such as ODR, KPI’s• Improvements driven by the SKF AEO model, with future opportunities



Customer need:Nestle Prepared Foods – Solon, OH facility needed a tool that would enable their maintenance personnel to perform basic predictive maintenance tasks without extensive training or experience in typical predictive technologies.

SKF solution:The new SKF Machine Condition Advisor provides the customer with a simple, portable tool that provides overall velocity, acceleration and temperature readings.

Customer benefits: During beta testing the customer documented a gearbox with excessive vibration. The gearbox was removed from service during planned downtime, avoiding unplanned downtime cost of $4,200 and potential additional replacement cost of the gearbox is $2,700. Based on initial success the plant is increasing the assets being monitored.

SKF benefits:• The MCA is now documented within Nestle as a valuable tool to be used in

developing basic predictive maintenance routes.• Replication opportunities.

Nestlé Prepared Foods Company, USA

Food Industry – New Market Offer

Energy company in Europe

Customized seals keep contamination out

Customer need:In order to extract material needed to generate energy, a lot of mining debris has to be removed. During this process abrasive material, like minerals, sand, dust etc have heavy effects on the technical equipment.

SKF solution:SKF SensorMount Technology to adjust the required clearance during the mounting process.The new solution solving the customer need consists of: • Two pieces of sealed spherical roller bearings• A special designed seal• Mounted with the help of the already existing SensorMount technology

Customer benefits: • Much longer service lifetime (+ 50%) having the result of no short-time bearing failures• Reduced downtime and maintenance costs and reduced costs for re-lubrication. • Total benefit of 146,000 EUR

SKF benefits:•Added value due to combination of bearings and seals into one solution.



Key business message

Key business message

• Industry is still buying…if ROI is short term

• SKF delivered over 2.8 BSEK in value in 2008

• SKF in return benefits from increased sales, margin improvements and customer retention

• SKF delivers this through unique products, services and solutions

SKF Knowledge Engineering can help find value and can deliver it!


delivering measurable value - skf.com€¦ · delivering measurable value dan bradley ... • the...

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